In a move to ease the financial burden on low-income Canadians, especially seniors, the Canada Revenue Agency (CRA) will issue a $250 tax-free relief payment in August 2025.
This one-time support comes as a response to the continued rise in inflation, with costs of groceries, utilities, and healthcare steadily increasing across the country.
Designed to offer immediate assistance to vulnerable individuals, this relief boost will be automatically sent to eligible recipients, without any application required.
Why the CRA Is Issuing This $250 Relief Payment
The cost of living continues to climb, placing additional stress on Canadians living on fixed or limited incomes. The CRA’s relief boost aims to help with:
- Rising grocery prices that strain monthly budgets
- Prescription drug expenses for those with chronic health conditions
- Skyrocketing utility bills, especially during weather extremes
- Transportation costs, including public transit and fuel
This one-time payment serves as a temporary cushion to alleviate the pressure on everyday necessities.
Who Is Eligible for the $250 Payment?
To receive this $250 CRA relief payment, individuals must meet specific eligibility criteria related to age, income, and benefit enrollment.
| Eligibility Requirement | Details |
|---|---|
| Age | Must be 65 or older as of July 1, 2025 |
| Income Threshold | Less than $25,000 (single) or $40,000 (couples) |
| Tax Filing | Must have filed 2024 taxes by June 30, 2025 |
| Benefit Status | Must already receive OAS, GIS, or CRA-administered benefits |
| Application Required | No – CRA will automatically assess eligibility |
Those who qualify will receive the funds via direct deposit or cheque, based on existing CRA account information.
When Will You Get Paid?
The CRA has set a payment window between August 8 and August 15, 2025.
- Direct deposit recipients will likely receive the funds earlier during the window.
- Mailed cheques may take additional 3-5 business days, depending on postal delivery times.
To avoid delays, recipients are advised to update banking and mailing information in their CRA My Account by July 31, 2025.
Will This Affect Other Federal Benefits?
No. The CRA confirms that this $250 payment is tax-free and will not reduce or interfere with any ongoing federal benefits, such as:
- Old Age Security (OAS)
- Guaranteed Income Supplement (GIS)
- Canada Pension Plan (CPP)
You will continue to receive your regular monthly payments without any deductions or changes.
Why You Don’t Need to Apply
The government is using 2024 tax return data and existing benefit enrollment records to determine eligibility. This automatic process ensures:
- Faster delivery
- Less paperwork
- Fewer barriers for seniors and low-income recipients
The goal is to streamline support and get help where it’s needed most—quickly and efficiently.
The CRA’s $250 one-time relief payment in August 2025 offers much-needed financial support to low-income seniors and benefit recipients dealing with rising costs.
With automatic disbursement, no application, and zero impact on existing benefits, this tax-free payment is a lifeline during a challenging economic period.
Ensure your CRA account details are up-to-date before the end of July to receive your payment without delay.
FAQs
Do I need to apply for the $250 CRA relief payment?
No, the CRA will automatically assess eligibility based on your 2024 tax return and benefit status.
What if I haven’t filed my 2024 taxes yet?
You must file by June 30, 2025 to be eligible for the payment in August.
Will this payment affect my other benefits like GIS or OAS?
No, this payment is separate and tax-free. It will not reduce your existing benefits.